Not Filed Return Due to Auditor’s Death: HC Orders Reinstate GST Enrollment

The Karnataka High Court in a ruling asked the department to restore the denied GST enrollment since the taxpayer can not furnish the GST returns because of the untimely death of the auditor.

The petitioner, M/s Kolapudi Enoch Washington mentioned that because of the sudden death of his auditor he can not incur the GST payments within the stipulated time which was directed to the show cause notice on the date 24.02.2022 being provided via the respondents to the applicants who do not obtain that, as his email account consists of the spam filter, because of which the applicant was not being learned about the show cause notice and does not provide his answer via resulting to the respondent No 2 refusing the GST registration of the applicant.

Justice S.R. Krishna Kumar would consider the applicant’s contention that the appellate council does not empower to withdraw the delay in choosing the petition under Section 107 of the CGST Act for the mentioned case the same is open for the court to withdraw the delay via practising its powers beneath article 226 of the constitution of India.

The court sees that “In the instant case, it is the specific assertion of the petitioner that due to the untimely demise of his Auditor and on account of bona fide reasons, unavoidable circumstances and sufficient cause, it was not possible for him to not only file the GST returns and make payment within the stipulated time but also could not prefer the appeal within the prescribed period.

In my considered opinion, the explanation offered by the petitioner in not making GST payment, filing returns and preferring an appeal deserves to be accepted and by adopting a justice-oriented approach, I deem it just and appropriate to set aside the impugned orders and direct the 2nd respondent to restore the GST registration of the petitioner, subject to payment of all dues by the petitioner,”